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Johnson & Johnson Reports Q4 and Full-Year 2024 Results

1. JNJ reports Q4 2024 sales at $22.52 billion, up 5.3%. 2. Net earnings dropped 17% in Q4 2024 compared to last year. 3. Full year 2024 operational sales growth was 5.9%. 4. Promising pipeline includes treatments for various cancers and heart failure. 5. Innovative Medicine segment grew 4.4%, while MedTech grew 6.7%.

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FAQ

Why Bullish?

Despite earnings decline, sales growth and pipeline strength indicate future potential. Similar past scenarios led to stock positivity.

How important is it?

Sales growth and innovative drugs are critical for market perceptions, potentially impacting valuation significantly.

Why Short Term?

Immediate impact from Q4 results may affect stock, but growth could stabilize quickly, reminiscent of past quarterly reactions.

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NYSE: JNJNYSE: PFENASDAQ: MRK
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2024. "2024 was a transformative year for Johnson & Johnson, marked by strong growth, an accelerating pipeline and industry-leading investments in innovation,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “As a healthcare company, with a disease-centric approach, we are improving the standard of care in a broad range of diseases with high unmet need, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. With our strong financial foundation, differentiated portfolio and robust pipeline, we are well positioned to sustain the high pace of growth and innovation that is the hallmark of Johnson & Johnson.” Unless otherwise noted, the financial results and earnings guidance included below reflect the continuing operations of Johnson & Johnson. Overall financial results Q4 Full Year ($ in Millions, expect EPS) 2024 2023 % Change 2024 2023 % Change Reported Sales $22,520 $ 21,395 5.3% $88,821 $ 85,159 4.3% Net Earnings $3,431 $4,132 (17.0)% $14,066 $13,326 5.6% EPS (diluted) $1.41 $1.70 (17.1)% $5.79 $5.20 11.3% Q4 Full Year Non-GAAP* ($ in Millions, except EPS) 2024 2023 % Change 2024 2023 % Change Operational Sales1,2 6.7% 5.9% Adjusted Operational Sales1,3 5.7% 5.4% Adjusted Operational Sales1,3 ex. COVID-19 Vaccine 5.9% 6.5% Adjusted Net Earnings1,4 $4,946 $5,562 (11.1)% $ 24,242 $ 25,409 (4.6)% Adjusted EPS (diluted)1,4 $2.04 $2.29 (10.9)% $9.98 $9.92 0.6% Free Cash Flow6,7 ~$19,800 $18,248 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules 2 Excludes the impact of translational currency 3 Excludes the net impact of acquisitions and divestitures and translational currency 4 Excludes intangible amortization expense and special items 5 Excludes COVID-19 Vaccine 6 Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment. Cash flow from operations, the most directly comparable GAAP financial measure, will be included in subsequent SEC filings. 7 Full year 2024 is estimated as of January 22, 2025. Full year 2023 includes approximately 8 months contribution from the Consumer Health segment. Note: values may have been rounded Regional sales results Q4 % Change ($ in Millions) 2024 2023 Reported Operational1,2 Currency Adjusted Operational1,3 U.S. $13,204 $12,009 10.0% 10.0 - 8.6 International 9,316 9,386 (0.7) 2.5 (3.2) 2.0 Worldwide $22,520 $21,395 5.3% 6.7 (1.4) 5.7 Full Year % Change ($ in Millions) 2024 2023 Reported Operational1,2 Currency Adjusted Operational1,3 U.S. $50,302 $46,444 8.3% 8.3 - 7.6 International 38,519 38,715 (0.5) 2.9 (3.4) 2.7 Worldwide $88,821 $85,159 4.3% 5.9 (1.6) 5.4 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules 2 Excludes the impact of translational currency 3 Excludes the net impact of acquisitions and divestitures and translational currency Note: values may have been rounded Segment sales results Q4 % Change ($ in Millions) 2024 2023 Reported Operational1,2 Currency Adjusted Operational1,3 Innovative Medicine $14,332 $13,722 4.4% 6.1 (1.7) 6.3 MedTech 8,188 7,673 6.7 7.6 (0.9) 4.6 Worldwide $22,520 $21,395 5.3% 6.7 (1.4) 5.7 Full Year % Change ($ in Millions) 2024 2023 Reported Operational1,2 Currency Adjusted Operational1,3 Innovative Medicine $56,964 $54,759 4.0% 5.7 (1.7) 5.8 MedTech 31,857 30,400 4.8 6.2 (1.4) 4.7 Worldwide $88,821 $85,159 4.3% 5.9 (1.6) 5.4 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules 2 Excludes the impact of translational currency 3 Excludes the net impact of acquisitions and divestitures and translational currency Note: values may have been rounded Full year 2024 segment commentary: Operational sales* reflected below excludes the impact of translational currency. Innovative Medicine Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 7.5%*. Growth was driven primarily by DARZALEX (daratumumab), ERLEADA (apalutamide), CARVYKTI (ciltacabtagene autoleucel), and Other Oncology in Oncology, TREMFYA (guselkumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by STELARA (ustekinumab) in Immunology and Other Neuroscience in Neuroscience. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 5.7%*. MedTech MedTech worldwide operational sales grew 6.2%*, with net acquisitions and divestitures positively impacting growth by 1.5%. Growth was driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, and wound closure products in General Surgery. Full-year 2025 guidance: Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP. ($ in Billions, except EPS) January 2025 Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point 2.0% – 3.0% / 2.5% Operational Sales2,5 / Mid-point Change vs. Prior Year / Mid-point $90.9B – $91.7B / $91.3B 2.5% – 3.5% / 3.0% Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point $89.2B – $90.0B / $89.6B 0.5% – 1.5% / 1.0% Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point $10.75 – $10.95 / $10.85 7.7% – 9.7% / 8.7% Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point $10.50 – $10.70 / $10.60 5.2% – 7.2% / 6.2% 1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures 2 Non-GAAP financial measure; excludes the impact of translational currency 3 Calculated using Euro Average Rate: January 2025 = $1.04 (Illustrative purposes only) 4 Non-GAAP financial measure; excludes intangible amortization expense and special items 5 Excludes COVID-19 Vaccine Note: percentages may have been rounded Other modeling considerations will be provided on the webcast. Notable announcements in the quarter: The information contained in this section should be read together with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company’s website at News Releases, as well as Innovative Medicine News Center, MedTech News & Events, and www.factsabouttalc.com. Regulatory SPRAVATO (esketamine) approved in the U.S. as the first and only monotherapy for adults with treatment-resistant depression1 Press Release European Commission approves LAZCLUZE (lazertinib) in combination with RYBREVANT (amivantamab) for the first-line treatment of patients with EGFR-mutated advanced non-small cell lung cancer1 Press Release New Drug Application initiated with U.S. FDA for TAR-200, the first and only intravesical drug releasing system for patients with BCG-unresponsive high-risk non-muscle-invasive bladder cancer1 Press Release Johnson & Johnson MedTech Announces CE Mark Approval for Dual Energy THERMOCOOL SMARTTOUCH SF Catheter1 Press Release Nipocalimab granted U.S. FDA Priority Review for the treatment of generalized myasthenia gravis1 Press Release Johnson & Johnson's Posdinemab and Tau Active Immunotherapy Receive U.S. FDA Fast Track Designations for the Treatment of Alzheimer's Disease1 Press Release European Commission approves RYBREVANT (amivantamab) in combination with LAZCLUZE (lazertinib) for the first-line treatment of patients with EGFR-mutated advanced non-small cell lung cancer Press Release Johnson & Johnson submits application to the European Medicines Agency seeking approval of a new indication for IMBRUVICA (ibrutinib) in adult patients with previously untreated mantle cell lymphoma (MCL) who are eligible for autologous stem cell transplant Press Release U.S. FDA Expands Indication for Impella Heart Pumps to Treat Pediatric Patients Press Release Johnson & Johnson seeks U.S. FDA approval for first pediatric indications for TREMFYA (guselkumab) Press Release Johnson & Johnson seeks U.S. FDA approval for subcutaneous induction regimen of TREMFYA (guselkumab) in ulcerative colitis, a first for an IL-23 inhibitor Press Release Johnson & Johnson MedTech Receives IDE Approval for OTTAVA Robotic Surgical System Press Release Nipocalimab is the first and only investigational therapy granted U.S. FDA Breakthrough Therapy Designation for the treatment of adults living with moderate-to-severe Sjögren's disease Press Release Johnson & Johnson submits applications in the U.S. and EU seeking approval of DARZALEX FASPRO / DARZALEX as subcutaneous monotherapy for high-risk smoldering multiple myeloma Press Release DARZALEX (daratumumab)-SC based quadruplet regimen approved by the European Commission for patients with newly diagnosed multiple myeloma who are transplant-eligible Press Release Data Releases RYBREVANT (amivantamab-vmjw) plus LAZCLUZE (lazertinib) show statistically significant and clinically meaningful improvement in overall survival versus osimertinib1 Press Release Johnson & Johnson to showcase strength of its broad hematology portfolio and pipeline at the 2024 American Society of Hematology Annual Meeting Press Release Icotrokinra delivered an industry-leading combination of significant skin clearance with demonstrated tolerability in a once daily pill in Phase 3 topline results Press Release Johnson & Johnson advances leadership in rheumatic disease innovation with 43 abstracts at ACR 2024 Press Release Shockwave Medical Unveils First Clinical Outcomes of New IVL Platform in Late-Breaking Presentation at VIVA 2024 Press Release TREMFYA (guselkumab) is the first and only IL-23 inhibitor to demonstrate robust results with a fully subcutaneous regimen in both induction and maintenance in Crohn's disease Press Release New SPECTREM study findings reveal TREMFYA (guselkumab) effectively clears overlooked and undertreated plaque psoriasis Press Release Johnson & Johnson highlights innovative neuropsychiatry portfolio and pipeline at Psych Congress Press Release Nipocalimab demonstrates sustained disease control in adolescents living with generalized myasthenia gravis in Phase 2/3 study Press Release Product Launch MENTOR MemoryGel Enhance Breast Implant Receives FDA Approval for Largest Size Breast Implants for Reconstruction Press Release Johnson & Johnson MedTech Receives FDA Approval for the VARIPULSE Pulsed Field Ablation Platform for the Treatment of Atrial Fibrillation2 Press Release Other Johnson & Johnson Strengthens Neuroscience Leadership with Acquisition of Intra-Cellular Therapies, Inc.1 Press Release 1 Subsequent to the quarter 2 On January 5, 2025, Johnson & Johnson MedTech temporarily paused the U.S. External Evaluation and all U.S. VARIPULSE cases. More information can be found in the Statement on VARIPULSE. Webcast information: Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:00 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations. About Johnson & Johnson: At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com. Non-GAAP financial measures: * “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results. Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results. Note to investors concerning forward-looking statements: This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments. Johnson & Johnson and Subsidiaries Supplementary Sales Data   (Unaudited; Dollars in Millions) FOURTH QUARTER TWELVE MONTHS Percent Change Percent Change 2024 2023 Total Operations Currency 2024 2023 Total Operations Currency Sales to customers by segment of business   Innovative Medicine (1) U.S. $ 8,977 8,079 11.1 % 11.1 - $ 33,970 31,169 9.0 % 9.0 - International 5,355 5,643 (5.1 ) (1.0 ) (4.1 ) 22,994 23,590 (2.5 ) 1.3 (3.8 ) 14,332 13,722 4.4 6.1 (1.7 ) 56,964 54,759 4.0 5.7 (1.7 )   Innovative Medicine excluding COVID-19 Vaccine (1) U.S. 8,977 8,079 11.1 11.1 - 33,970 31,169 9.0 9.0 - International 5,355 5,599 (4.4 ) (0.3 ) (4.1 ) 22,796 22,473 1.4 5.5 (4.1 ) 14,332 13,678 4.8 6.5 (1.7 ) 56,766 53,642 5.8 7.5 (1.7 )   MedTech U.S. 4,227 3,930 7.6 7.6 - 16,332 15,275 6.9 6.9 - International 3,961 3,743 5.8 7.6 (1.8 ) 15,525 15,125 2.6 5.4 (2.8 ) 8,188 7,673 6.7 7.6 (0.9 ) 31,857 30,400 4.8 6.2 (1.4 )   U.S. 13,204 12,009 10.0 10.0 - 50,302 46,444 8.3 8.3 - International 9,316 9,386 (0.7 ) 2.5 (3.2 ) 38,519 38,715 (0.5 ) 2.9 (3.4 ) Worldwide 22,520 21,395 5.3 6.7 (1.4 ) 88,821 85,159 4.3 5.9 (1.6 )   U.S. 13,204 12,009 10.0 10.0 - 50,302 46,444 8.3 8.3 - International 9,316 9,342 (0.3 ) 2.9 (3.2 ) 38,321 37,598 1.9 5.5 (3.6 ) Worldwide excluding COVID-19 Vaccine (1) $ 22,520 21,351 5.5 % 6.9 (1.4 ) $ 88,623 84,042 5.5 % 7.0 (1.5 )   Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.   (1) Refer to supplemental sales information schedules Johnson & Johnson and Subsidiaries Supplementary Sales Data   (Unaudited; Dollars in Millions) FOURTH QUARTER TWELVE MONTHS Percent Change Percent Change 2024 2023 Total Operations Currency 2024 2023 Total Operations Currency Sales to customers by geographic area   U.S. $ 13,204 12,009 10.0 % 10.0 - $ 50,302 46,444 8.3 % 8.3 -   Europe 4,921 4,962 (0.8 ) (0.2 ) (0.6 ) 20,212 20,410 (1.0 ) (0.6 ) (0.4 ) Western Hemisphere excluding U.S. 1,135 1,166 (2.7 ) 17.6 (20.3 ) 4,714 4,549 3.6 20.4 (16.8 ) Asia-Pacific, Africa 3,260 3,258 0.1 0.9 (0.8 ) 13,593 13,756 (1.2 ) 2.3 (3.5 ) International 9,316 9,386 (0.7 ) 2.5 (3.2 ) 38,519 38,715 (0.5 ) 2.9 (3.4 )   Worldwide $ 22,520 21,395 5.3 % 6.7 (1.4 ) $ 88,821 85,159 4.3 % 5.9 (1.6 )     Johnson & Johnson and Subsidiaries Supplementary Sales Data   (Unaudited; Dollars in Millions) FOURTH QUARTER TWELVE MONTHS Percent Change Percent Change 2024 2023 Total Operations Currency 2024 2023 Total Operations Currency Sales to customers by geographic area (ex. COVID-19 Vaccine)   U.S.* $ 13,204 12,009 10.0 % 10.0 - $ 50,302 46,444 8.3 % 8.3 -   Europe(1) 4,921 4,918 0.1 0.7 (0.6 ) 20,014 19,293 3.7 4.1 (0.4 ) Western Hemisphere excluding U.S.* 1,135 1,166 (2.7 ) 17.6 (20.3 ) 4,714 4,549 3.6 20.4 (16.8 ) Asia-Pacific, Africa* 3,260 3,258 0.1 0.9 (0.8 ) 13,593 13,756 (1.2 ) 2.3 (3.5 ) International 9,316 9,342 (0.3 ) 2.9 (3.2 ) 38,321 37,598 1.9 5.5 (3.6 )   Worldwide $ 22,520 21,351 5.5 % 6.9 (1.4 ) $ 88,623 84,042 5.5 % 7.0 (1.5 )   Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.   (1) Refer to supplemental sales information schedules *No COVID-19 Vaccine sales   Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings   (Unaudited; in Millions Except Per Share Figures) FOURTH QUARTER   2024 2023 Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) Sales to customers $ 22,520 100.0 $ 21,395 100.0 5.3 Cost of products sold 7,128 31.6 6,798 31.8 4.9 Gross Profit 15,392 68.4 14,597 68.2 5.4 Selling, marketing and administrative expenses 6,453 28.6 5,810 27.1 11.1 Research and development expense 5,298 23.5 4,480 20.9 18.3 In-process research and development impairments 17 0.1 58 0.3 Interest (income) expense, net (144 ) (0.6 ) (212 ) (1.0 ) Other (income) expense, net (161 ) (0.7 ) (421 ) (2.0 ) Restructuring 42 0.2 56 0.3 Earnings before provision for taxes on income 3,887 17.3 4,826 22.6 (19.5 ) Provision for taxes on income 456 2.1 694 3.3 (34.3 ) Net earnings from Continuing Operations $ 3,431 15.2 $ 4,132 19.3 (17.0 ) Net earnings/(loss) from Discontinued Operations, net of tax - (83 ) Net earnings $ 3,431 $ 4,049   Net earnings per share (Diluted) from Continuing Operations $ 1.41 $ 1.70 (17.1 ) Net earnings/(loss) per share (Basic) from Discontinued Operations* $ - $ (0.03 )   Average shares outstanding (Diluted) 2,427.1 2,430.7   Effective tax rate from Continuing Operations 11.7 % 14.4 %   Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1) Earnings before provision for taxes on income from Continuing Operations $ 5,421 24.1 $ 6,237 29.2 (13.1 ) Net earnings from Continuing Operations $ 4,946 22.0 $ 5,562 26.0 (11.1 ) Net earnings per share (Diluted) from Continuing Operations $ 2.04 $ 2.29 (10.9 ) Effective tax rate from Continuing Operations 8.8 % 10.8 % * Basic shares of 2,407.2 are used to calculate loss per share in the fourth quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive. (1) See Reconciliation of Non-GAAP Financial Measures.   Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings   (Unaudited; in Millions Except Per Share Figures) TWELVE MONTHS   2024 2023 Percent Percent Percent Increase Amount to Sales Amount to Sales (Decrease) Sales to customers $ 88,821 100.0 $ 85,159 100.0 4.3 Cost of products sold 27,471 30.9 26,553 31.2 3.5 Gross Profit 61,350 69.1 58,606 68.8 4.7 Selling, marketing and administrative expenses 22,869 25.7 21,512 25.2 6.3 Research and development expense 17,232 19.4 15,085 17.7 14.2 In-process research and development impairments 211 0.2 313 0.4 Interest (income) expense, net (577 ) (0.6 ) (489 ) (0.6 ) Other (income) expense, net 4,694 5.3 6,634 7.8 Restructuring 234 0.3 489 0.6 Earnings before provision for taxes on income 16,687 18.8 15,062 17.7 10.8 Provision for taxes on income 2,621 3.0 1,736 2.1 51.0 Net earnings from Continuing Operations $ 14,066 15.8 $ 13,326 15.6 5.6 Net earnings from Discontinued Operations, net of tax - 21,827 Net earnings $ 14,066 $ 35,153   Net earnings per share (Diluted) from Continuing Operations $ 5.79 $ 5.20 11.3 Net earnings per share (Diluted) from Discontinued Operations $ - $ 8.52   Average shares outstanding (Diluted) 2,429.4 2,560.4   Effective tax rate from Continuing Operations 15.7 % 11.5 %   Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1) Earnings before provision for taxes on income from Continuing Operations $ 28,979 32.6 $ 29,811 35.0 (2.8 ) Net earnings from Continuing Operations $ 24,242 27.3 $ 25,409 29.8 (4.6 ) Net earnings per share (Diluted) from Continuing Operations $ 9.98 $ 9.92 0.6 Effective tax rate from Continuing Operations 16.3 % 14.8 %   (1) See Reconciliation of Non-GAAP Financial Measures. Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP Financial Measures   Fourth Quarter Twelve Months Ended (Dollars in Millions Except Per Share Data) 2024 2023 2024 2023 Net Earnings from Continuing Operations, after tax- as reported $3,431 $4,132 $14,066 $13,326   Pre-tax Adjustments Litigation related (16) 166 5,450 7,152 Intangible Asset Amortization expense 1,171 1,148 4,526 4,532 COVID-19 Vaccine related costs 1 23 10 100 663 Restructuring related 2 62 139 269 798 Medical Device Regulation 3 47 88 204 311 Acquisition, integration and divestiture related 298 237 1,226 339 (Gains)/losses on securities (68) (435) 306 641 IPR&D impairments 17 58 211 313   Tax Adjustments Tax impact on special item adjustments 4 (80) 75 (2,135) (2,694) Tax legislation and other tax related 61 (56) 19 28 Adjusted Net Earnings from Continuing Operations, after tax $4,946 $5,562 $24,242 $25,409 Average shares outstanding (Diluted) 2,427.1 2,430.7 2,429.4 2,560.4 Adjusted net earnings per share from Continuing Operations (Diluted) $2.04 $2.29 $9.98 $9.92 Operational adjusted net earnings per share from Continuing Operations (Diluted) $2.05 $9.99   Notes: 1 COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments which was completed in Q4 2024. 2 In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expense of $102 million Q4 2024 YTD and $55 million in the fiscal fourth quarter of 2023 ($479 million Q4 2023 YTD) includes the termination of partnered and non-partnered program costs, asset impairments and asset divestments. This program was completed in Q4 2024. In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expense of $60 million in the fiscal fourth quarter of 2024 ($167 million Q4 2024 YTD) and $84 million in the fiscal fourth quarter of 2023 ($319 million Q4 2023 YTD) primarily includes costs related to the market and product exits. 3 European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance. The implementation was substantially completed as of Q4 2024, and ongoing costs will be reflected in MedTech's operating results beginning in 2025. 4 The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings. Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP Financial Measure   Adjusted Operational Sales Growth FOURTH QUARTER 2024 ACTUAL vs. 2023 ACTUAL     Segments   Innovative Medicine MedTech Total   WW As Reported 4.4 % 6.7 % 5.3 % U.S. 11.1 % 7.6 % 10.0 % International (5.1 )% 5.8 % (0.7 )%   WW Currency (1.7 ) (0.9 ) (1.4 ) U.S. - - - International (4.1 ) (1.8 ) (3.2 )   WW Operational 6.1 % 7.6 % 6.7 % U.S. 11.1 % 7.6 % 10.0 % International (1.0 )% 7.6 % 2.5 %   Shockwave (3.4 ) (1.2 ) U.S. (5.1 ) (1.7 ) International (1.5 ) (0.6 )   All Other Acquisitions and Divestitures (A&D) 0.2 0.4 0.2 U.S. 0.1 0.8 0.3 International 0.3 0.0 0.1   WW Adjusted Operational Ex A&D 6.3 % 4.6 % 5.7 % U.S. 11.2 % 3.3 % 8.6 % International (0.7 )% 6.1 % 2.0 %   COVID-19 Vaccine 0.4 0.2 U.S. 0.0 0.0 International 0.7 0.4   WW Adjusted Operational Ex A&D & COVID-19 Vaccine 6.7 % 4.6 % 5.9 % U.S. 11.2 % 3.3 % 8.6 % International 0.0 % 6.1 % 2.4 %     Note: Percentages are based on actual, non-rounded figures and may not sum Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP Financial Measure   Adjusted Operational Sales Growth TWELVE MONTHS 2024 ACTUAL vs. 2023 ACTUAL     Segments   Innovative Medicine MedTech Total   WW As Reported 4.0 % 4.8 % 4.3 % U.S. 9.0 % 6.9 % 8.3 % International (2.5 )% 2.6 % (0.5 )%   WW Currency (1.7 ) (1.4 ) (1.6 ) U.S. - - - International (3.8 ) (2.8 ) (3.4 )   WW Operational 5.7 % 6.2 % 5.9 % U.S. 9.0 % 6.9 % 8.3 % International 1.3 % 5.4 % 2.9 %   Shockwave (1.9 ) (0.7 ) U.S. (2.9 ) (1.0 ) International (0.8 ) (0.3 )   All Other Acquisitions and Divestitures (A&D) 0.1 0.4 0.2 U.S. 0.1 0.8 0.3 International 0.2 0.1 0.1   WW Adjusted Operational Ex A&D 5.8 % 4.7 % 5.4 % U.S. 9.1 % 4.8 % 7.6 % International 1.5 % 4.7 % 2.7 %   COVID-19 Vaccine 1.8 1.1 U.S. 0.0 0.0 International 4.2 2.6   WW Adjusted Operational Ex A&D & COVID-19 Vaccine 7.6 % 4.7 % 6.5 % U.S. 9.1 % 4.8 % 7.6 % International 5.7 % 4.7 % 5.3 %   Note: Percentages are based on actual, non-rounded figures and may not sum REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM) FOURTH QUARTER TWELVE MONTHS % Change % Change INNOVATIVE MEDICINE SEGMENT (2) 2024 2023 Reported Operational (1) Currency 2024 2023 Reported Operational (1) Currency   IMMUNOLOGY US $ 2,856 3,033 -5.9 % -5.9 % - $ 11,355 11,539 -1.6 % -1.6 % - Intl 1,383 1,562 -11.5 % -6.5 % -5.0 % 6,473 6,513 -0.6 % 4.0 % -4.6 % WW 4,238 4,595 -7.8 % -6.1 % -1.7 % 17,828 18,052 -1.2 % 0.4 % -1.6 % REMICADE US 231 294 -21.4 % -21.4 % - 1,009 1,143 -11.7 % -11.7 % - US Exports (3) 9 35 -73.3 % -73.3 % - 98 147 -33.0 % -33.0 % - Intl 117 100 16.5 % 22.9 % -6.4 % 497 549 -9.5 % -5.0 % -4.5 % WW 359 429 -16.5 % -15.0 % -1.5 % 1,605 1,839 -12.8 % -11.4 % -1.4 % SIMPONI / SIMPONI ARIA US 262 258 1.3 % 1.3 % - 1,082 1,124 -3.8 % -3.8 % - Intl 321 244 32.1 % 44.2 % -12.1 % 1,108 1,073 3.3 % 13.2 % -9.9 % WW 583 502 16.2 % 22.1 % -5.9 % 2,190 2,197 -0.3 % 4.5 % -4.8 % STELARA US 1,699 1,786 -4.9 % -4.9 % - 6,720 6,966 -3.5 % -3.5 % - Intl 650 967 -32.7 % -29.6 % -3.1 % 3,641 3,892 -6.4 % -3.3 % -3.1 % WW 2,349 2,753 -14.7 % -13.6 % -1.1 % 10,361 10,858 -4.6 % -3.4 % -1.2 % TREMFYA US 654 657 -0.6 % -0.6 % - 2,443 2,147 13.7 % 13.7 % - Intl 295 252 16.9 % 21.7 % -4.8 % 1,227 999 22.8 % 27.6 % -4.8 % WW 949 910 4.2 % 5.6 % -1.4 % 3,670 3,147 16.6 % 18.1 % -1.5 % OTHER IMMUNOLOGY US 0 2 * * - 3 11 -74.1 % -74.1 % - Intl 0 0 - - - 0 0 - - - WW 0 2 * * * 3 11 -74.1 % -74.1 % - INFECTIOUS DISEASES US 331 353 -6.4 % -6.4 % - 1,354 1,500 -9.8 % -9.8 % - Intl 443 498 -11.2 % -9.8 % -1.4 % 2,042 2,918 -30.0 % -29.3 % -0.7 % WW 774 852 -9.2 % -8.4 % -0.8 % 3,396 4,418 -23.1 % -22.7 % -0.4 % COVID-19 VACCINE US 0 0 - - - 0 0 - - - Intl 0 44 * * * 198 1,117 -82.4 % -82.4 % 0.0 % WW 0 44 * * * 198 1,117 -82.4 % -82.4 % 0.0 % EDURANT / rilpivirine US 7 9 -10.1 % -10.1 % - 31 35 -10.0 % -10.0 % - Intl 315 299 5.0 % 5.6 % -0.6 % 1,241 1,115 11.2 % 11.2 % 0.0 % WW 322 307 4.6 % 5.1 % -0.5 % 1,272 1,150 10.6 % 10.6 % 0.0 % PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA US 321 341 -5.8 % -5.8 % - 1,311 1,446 -9.4 % -9.4 % - Intl 86 98 -12.9 % -8.9 % -4.0 % 401 408 -1.7 % 1.1 % -2.8 % WW 407 439 -7.4 % -6.5 % -0.9 % 1,712 1,854 -7.7 % -7.1 % -0.6 % OTHER INFECTIOUS DISEASES US 1 4 -53.1 % -53.1 % - 11 19 -41.0 % -41.0 % - Intl 43 58 -24.2 % -22.4 % -1.8 % 203 278 -26.7 % -23.9 % -2.8 % WW 45 62 -26.1 % -24.4 % -1.7 % 214 297 -27.6 % -25.0 % -2.6 %         REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM) FOURTH QUARTER TWELVE MONTHS % Change % Change 2024 2023 Reported Operational (1) Currency 2024 2023 Reported Operational (1) Currency NEUROSCIENCE US 1,148 1,022 12.3 % 12.3 % - 4,398 4,065 8.2 % 8.2 % - Intl 628 780 -19.6 % -16.8 % -2.8 % 2,718 3,076 -11.6 % -7.8 % -3.8 % WW 1,775 1,801 -1.5 % -0.3 % -1.2 % 7,115 7,140 -0.4 % 1.3 % -1.7 % CONCERTA / Methylphenidate US 33 39 -12.8 % -12.8 % - 134 230 -41.7 % -41.7 % - Intl 125 142 -11.5 % -7.7 % -3.8 % 507 554 -8.4 % -4.1 % -4.3 % WW 159 180 -11.7 % -8.8 % -2.9 % 641 783 -18.1 % -15.1 % -3.0 % INVEGA SUSTENNA / XEPLION /INVEGA TRINZA / TREVICTA US 796 733 8.6 % 8.6 % - 3,125 2,897 7.9 % 7.9 % - Intl 267 278 -4.0 % -1.8 % -2.2 % 1,097 1,218 -9.9 % -7.1 % -2.8 % WW 1,063 1,011 5.1 % 5.7 % -0.6 % 4,222 4,115 2.6 % 3.4 % -0.8 % SPRAVATO US 269 180 50.1 % 50.1 % - 929 589 57.8 % 57.8 % - Intl 28 26 7.1 % 12.5 % -5.4 % 148 100 48.2 % 51.2 % -3.0 % WW 297 206 44.6 % 45.3 % -0.7 % 1,077 689 56.4 % 56.8 % -0.4 % OTHER NEUROSCIENCE US 49 71 -31.0 % -31.0 % - 210 349 -39.8 % -39.8 % - Intl 206 334 -38.1 % -35.4 % -2.7 % 965 1,204 -19.8 % -15.1 % -4.7 % WW 255 404 -36.9 % -34.6 % -2.3 % 1,175 1,553 -24.3 % -20.7 % -3.6 % ONCOLOGY US 3,019 2,285 32.2 % 32.2 % - 10,854 8,462 28.3 % 28.3 % - Intl 2,476 2,334 6.1 % 10.6 % -4.5 % 9,926 9,199 7.9 % 12.1 % -4.2 % WW 5,497 4,618 19.0 % 21.3 % -2.3 % 20,781 17,661 17.7 % 19.8 % -2.1 % CARVYKTI US 304 145 * * - 869 469 85.2 % 85.2 % - Intl 31 13 * * * 94 30 * * * WW 334 159 * * * 963 500 92.7 % 92.7 % 0.0 % DARZALEX US 1,799 1,395 28.9 % 28.9 % - 6,588 5,277 24.8 % 24.8 % - Intl 1,285 1,155 11.3 % 17.0 % -5.7 % 5,082 4,467 13.8 % 19.1 % -5.3 % WW 3,084 2,550 20.9 % 23.5 % -2.6 % 11,670 9,744 19.8 % 22.2 % -2.4 % ERLEADA US 342 287 19.0 % 19.0 % - 1,282 1,065 20.3 % 20.3 % - Intl 442 361 22.4 % 25.7 % -3.3 % 1,717 1,322 29.8 % 32.9 % -3.1 % WW 784 647 20.9 % 22.7 % -1.8 % 2,999 2,387 25.6 % 27.3 % -1.7 % IMBRUVICA US 250 255 -2.0 % -2.0 % - 1,020 1,051 -3.0 % -3.0 % - Intl 481 533 -9.6 % -6.8 % -2.8 % 2,018 2,214 -8.8 % -6.3 % -2.5 % WW 731 788 -7.2 % -5.2 % -2.0 % 3,038 3,264 -6.9 % -5.2 % -1.7 % TECVAYLI US 108 102 5.6 % 5.6 % - 418 334 25.3 % 25.3 % - Intl 38 24 59.9 % 71.6 % -11.7 % 131 61 * * * WW 146 126 15.8 % 18.0 % -2.2 % 549 395 38.8 % 39.8 % -1.0 % ZYTIGA / abiraterone acetate US 9 9 -7.3 % -7.3 % - 34 50 -32.2 % -32.2 % - Intl 127 191 -33.6 % -30.7 % -2.9 % 597 837 -28.6 % -24.6 % -4.0 % WW 135 201 -32.4 % -29.6 % -2.8 % 631 887 -28.8 % -25.0 % -3.8 % OTHER ONCOLOGY US 208 90 * * - 643 215 * * - Intl 74 58 25.5 % 30.6 % -5.1 % 288 269 7.1 % 10.4 % -3.3 % WW 282 148 90.4 % 92.4 % -2.0 % 931 484 92.5 % 94.3 % -1.8 %       REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM) FOURTH QUARTER TWELVE MONTHS % Change % Change 2024 2023 Reported Operational (1) Currency 2024 2023 Reported Operational (1) Currency PULMONARY HYPERTENSION US 819 733 11.6 % 11.6 % - 3,143 2,697 16.5 % 16.5 % - Intl 274 282 -3.2 % 1.2 % -4.4 % 1,140 1,117 2.0 % 8.2 % -6.2 % WW 1,092 1,017 7.4 % 8.7 % -1.3 % 4,282 3,815 12.3 % 14.1 % -1.8 % OPSUMIT US 385 368 4.8 % 4.8 % - 1,520 1,292 17.7 % 17.7 % - Intl 160 169 -5.2 % -2.5 % -2.7 % 664 681 -2.4 % 1.1 % -3.5 % WW 545 536 1.7 % 2.5 % -0.8 % 2,184 1,973 10.7 % 11.9 % -1.2 % UPTRAVI US 391 348 12.3 % 12.3 % - 1,511 1,326 13.9 % 13.9 % - Intl 75 70 5.7 % 11.2 % -5.5 % 307 255 20.1 % 27.3 % -7.2 % WW 465 419 11.2 % 12.1 % -0.9 % 1,817 1,582 14.9 % 16.1 % -1.2 % OTHER PULMONARY HYPERTENSION US 42 18 * * - 112 79 41.8 % 41.8 % - Intl 40 45 -10.0 % -0.4 % -9.6 % 169 182 -6.9 % 8.2 % -15.1 % WW 82 61 32.3 % 39.3 % -7.0 % 281 260 7.9 % 18.3 % -10.4 % CARDIOVASCULAR / METABOLISM / OTHER US 805 652 23.3 % 23.3 % - 2,866 2,906 -1.4 % -1.4 % - Intl 153 185 -17.6 % -15.1 % -2.5 % 696 765 -9.1 % -7.1 % -2.0 % WW 957 837 14.3 % 14.8 % -0.5 % 3,562 3,671 -3.0 % -2.6 % -0.4 % XARELTO US 676 525 28.5 % 28.5 % - 2,373 2,365 0.3 % 0.3 % - Intl - - - - - - - - - - WW 676 525 28.5 % 28.5 % - 2,373 2,365 0.3 % 0.3 % - OTHER US 130 127 1.5 % 1.5 % - 494 541 -8.8 % -8.8 % - Intl 153 185 -17.6 % -15.1 % -2.5 % 696 765 -9.1 % -7.1 % -2.0 % WW 281 312 -9.8 % -8.3 % -1.5 % 1,189 1,306 -8.9 % -7.8 % -1.1 %   TOTAL INNOVATIVE MEDICINE US 8,977 8,079 11.1 % 11.1 % - 33,970 31,169 9.0 % 9.0 % - Intl 5,355 5,643 -5.1 % -1.0 % -4.1 % 22,994 23,590 -2.5 % 1.3 % -3.8 % WW $ 14,332 $ 13,722 4.4 % 6.1 % -1.7 % $ 56,964 54,759 4.0 % 5.7 % -1.7 %     See footnotes at end of schedule       REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM) FOURTH QUARTER TWELVE MONTHS % Change % Change MEDTECH SEGMENT (2) 2024 2023 Reported Operational (1) Currency 2024 2023 Reported Operational (1) Currency   CARDIOVASCULAR (4) US $ 1,221 971 25.8 % 25.8 % - $ 4,513 3,633 24.2 % 24.2 % - Intl 841 698 20.6 % 22.0 % -1.4 % 3,194 2,717 17.6 % 20.9 % -3.3 % WW 2,062 1,669 23.6 % 24.2 % -0.6 % 7,707 6,350 21.4 % 22.8 % -1.4 % ELECTROPHYSIOLOGY US 681 667 2.1 % 2.1 % - 2,738 2,458 11.4 % 11.4 % - Intl 640 572 11.7 % 13.3 % -1.6 % 2,529 2,230 13.4 % 17.0 % -3.6 % WW 1,321 1,239 6.6 % 7.3 % -0.7 % 5,267 4,688 12.3 % 14.0 % -1.7 % ABIOMED US 308 276 11.3 % 11.3 % - 1,213 1,066 13.7 % 13.7 % - Intl 77 64 19.8 % 21.1 % -1.3 % 284 240 18.2 % 20.3 % -2.1 % WW 384 340 12.9 % 13.2 % -0.3 % 1,496 1,306 14.5 % 14.9 % -0.4 % SHOCKWAVE (5) US 202 - * * - 442 - * * - Intl 56 - * * - 122 - * * - WW 258 - * * - 564 - * * - OTHER CARDIOVASCULAR (4) US 31 28 11.1 % 11.1 % - 120 109 10.7 % 10.7 % - Intl 68 61 12.1 % 12.3 % -0.2 % 260 247 5.3 % 7.3 % -2.0 % WW 99 89 11.8 % 12.0 % -0.2 % 380 356 6.9 % 8.4 % -1.5 % ORTHOPAEDICS US 1,460 1,425 2.4 % 2.4 % - 5,689 5,525 3.0 % 3.0 % - Intl 856 843 1.6 % 2.5 % -0.9 % 3,470 3,417 1.5 % 3.0 % -1.5 % WW 2,315 2,268 2.1 % 2.5 % -0.4 % 9,158 8,942 2.4 % 3.0 % -0.6 % HIPS US 272 266 2.5 % 2.5 % - 1,057 996 6.2 % 6.2 % - Intl 146 132 10.6 % 11.7 % -1.1 % 581 564 3.0 % 4.6 % -1.6 % WW 418 398 5.2 % 5.6 % -0.4 % 1,638 1,560 5.0 % 5.6 % -0.6 % KNEES US 238 242 -1.5 % -1.5 % - 922 896 2.9 % 2.9 % - Intl 160 144 10.7 % 11.3 % -0.6 % 623 559 11.3 % 12.4 % -1.1 % WW 398 387 3.1 % 3.3 % -0.2 % 1,545 1,456 6.1 % 6.5 % -0.4 % TRAUMA US 514 487 5.5 % 5.5 % - 2,013 1,949 3.3 % 3.3 % - Intl 250 255 -1.9 % -0.5 % -1.4 % 1,036 1,030 0.6 % 2.1 % -1.5 % WW 764 741 3.0 % 3.5 % -0.5 % 3,049 2,979 2.3 % 2.9 % -0.6 % SPINE, SPORTS & OTHER US 434 430 1.1 % 1.1 % - 1,696 1,684 0.7 % 0.7 % - Intl 300 311 -3.6 % -2.9 % -0.7 % 1,230 1,263 -2.6 % -1.2 % -1.4 % WW 735 742 -0.9 % -0.6 % -0.3 % 2,926 2,947 -0.7 % -0.1 % -0.6 %         REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM) FOURTH QUARTER TWELVE MONTHS % Change % Change 2024 2023 Reported Operational (1) Currency 2024 2023 Reported Operational (1) Currency SURGERY US 1,038 1,047 -0.9 % -0.9 % - 4,003 4,031 -0.7 % -0.7 % - Intl 1,469 1,484 -1.0 % 1.4 % -2.4 % 5,842 6,006 -2.7 % 0.6 % -3.3 % WW 2,507 2,530 -0.9 % 0.4 % -1.3 % 9,845 10,037 -1.9 % 0.1 % -2.0 % ADVANCED US 478 468 2.0 % 2.0 % - 1,838 1,833 0.2 % 0.2 % - Intl 673 698 -3.6 % -1.6 % -2.0 % 2,650 2,837 -6.6 % -3.5 % -3.1 % WW 1,151 1,167 -1.4 % -0.1 % -1.3 % 4,488 4,671 -3.9 % -2.0 % -1.9 % GENERAL US 560 579 -3.1 % -3.1 % - 2,165 2,198 -1.5 % -1.5 % - Intl 795 785 1.4 % 4.0 % -2.6 % 3,192 3,168 0.8 % 4.3 % -3.5 % WW 1,357 1,364 -0.5 % 1.0 % -1.5 % 5,358 5,366 -0.2 % 2.0 % -2.2 % VISION US 509 487 4.5 % 4.5 % - 2,128 2,086 2.0 % 2.0 % - Intl 794 721 10.2 % 12.2 % -2.0 % 3,018 2,986 1.1 % 3.7 % -2.6 % WW 1,303 1,208 7.9 % 9.1 % -1.2 % 5,146 5,072 1.5 % 3.0 % -1.5 % CONTACT LENSES / OTHER US 396 374 6.0 % 6.0 % - 1,684 1,626 3.6 % 3.6 % - Intl 541 508 6.4 % 8.5 % -2.1 % 2,049 2,076 -1.3 % 1.8 % -3.1 % WW 937 882 6.3 % 7.4 % -1.1 % 3,733 3,702 0.8 % 2.6 % -1.8 % SURGICAL US 113 114 -0.4 % -0.4 % - 444 460 -3.4 % -3.4 % - Intl 252 212 19.3 % 21.1 % -1.8 % 969 910 6.5 % 8.2 % -1.7 % WW 365 326 12.4 % 13.6 % -1.2 % 1,413 1,370 3.2 % 4.3 % -1.1 %   TOTAL MEDTECH US 4,227 3,930 7.6 % 7.6 % - 16,332 15,275 6.9 % 6.9 % - Intl 3,961 3,743 5.8 % 7.6 % -1.8 % 15,525 15,125 2.6 % 5.4 % -2.8 % WW $ 8,188 $ 7,673 6.7 % 7.6 % -0.9 % $ 31,857 30,400 4.8 % 6.2 % -1.4 %     Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely   * Percentage greater than 100% or not meaningful (1) Operational growth excludes the effect of translational currency (2) Unaudited (3) Reported as U.S. sales (4) Previously referred to as Interventional Solutions (5) Acquired on May 31, 2024 Supplemental Sales Information (Unaudited) (Dollars in Millions)   FOURTH QUARTER TWELVE MONTHS Percent Change Percent Change 2024 2023 Total Operations Currency 2024 2023 Total Operations Currency   Innovative Medicine U.S. $ 8,977 8,079 11.1 11.1 - $ 33,970 31,169 9.0 9.0 - International 5,355 5,643 (5.1 ) (1.0 ) (4.1 ) 22,994 23,590 (2.5 ) 1.3 (3.8 ) Worldwide 14,332 13,722 4.4 6.1 (1.7 ) 56,964 54,759 4.0 5.7 (1.7 )   COVID-19 Vaccine U.S. - - - - - - - - - - International - 44 * * * 198 1,117 (82.4 ) (82.4 ) 0.0 Worldwide - 44 * * * 198 1,117 (82.4 ) (82.4 ) 0.0   Innovative Medicine excluding COVID-19 Vaccine U.S. 8,977 8,079 11.1 11.1 - 33,970 31,169 9.0 9.0 - International 5,355 5,599 (4.4 ) (0.3 ) (4.1 ) 22,796 22,473 1.4 5.5 (4.1 ) Worldwide 14,332 13,678 4.8 6.5 (1.7 ) 56,766 53,642 5.8 7.5 (1.7 )   Worldwide U.S. 13,204 12,009 10.0 10.0 - 50,302 46,444 8.3 8.3 - International 9,316 9,386 (0.7 ) 2.5 (3.2 ) 38,519 38,715 (0.5 ) 2.9 (3.4 ) Worldwide 22,520 21,395 5.3 6.7 (1.4 ) 88,821 85,159 4.3 5.9 (1.6 )   COVID-19 Vaccine U.S. - - - - - - - - - - International - 44 * * * 198 1,117 (82.4 ) (82.4 ) 0.0 Worldwide - 44 * * * 198 1,117 (82.4 ) (82.4 ) 0.0   Worldwide U.S. 13,204 12,009 10.0 10.0 - 50,302 46,444 8.3 8.3 - International 9,316 9,342 (0.3 ) 2.9 (3.2 ) 38,321 37,598 1.9 5.5 (3.6 ) Worldwide excluding COVID-19 Vaccine $ 22,520 21,351 5.5 6.9 (1.4 ) $ 88,623 84,042 5.5 7.0 (1.5 )   Europe $ 4,921 4,962 (0.8 ) (0.2 ) (0.6 ) $ 20,212 20,410 (1.0 ) (0.6 ) (0.4 ) Europe COVID-19 Vaccine Sales - 44 * * * 198 1,117 (82.4 ) (82.4 ) 0.0 Europe excluding COVID-19 Vaccine Sales $ 4,921 4,918 0.1 0.7 (0.6 ) $ 20,014 19,293 3.7 4.1 (0.4 )   * Percentage greater than 100% or not meaningful Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP Financial Measures Q4 QTD - Income Before Tax* and Research & Development Expense by Segment Dollars in Millions   Innovative Medicine MedTech Unallocated Worldwide Total 2024 2023 2024 2023 2024 2023 2024 2023   Reported Income Before Tax by Segment From Continuing Operations $ 4,009 4,238 72 404 (194 ) 184 3,887 4,826 % to Sales 28.0 % 30.9 % 0.9 % 5.3 % -0.9 % 0.9 % 17.3 % 22.6 %   Intangible asset amortization expense 685 747 486 401 - - 1,171 1,148   In-process research and development impairments 17 - - 58 - - 17 58   Litigation related (41 ) 17 (29 ) 149 54 - (16 ) 166   Loss/(gain) on securities (50 ) (112 ) (18 ) (59 ) - (264 ) (68 ) (435 )   Restructuring related 2 55 60 84 - - 62 139   Acquisition, integration and divestiture related 12 175 268 62 18 - 298 237   Medical Device Regulation - - 47 88 - - 47 88   COVID-19 Vaccine related costs 23 10 - - - - 23 10   Adjusted Income Before Tax by Segment From Continuing Operations $ 4,657 5,130 886 1,187 (122 ) (80 ) 5,421 6,237 % to Sales 32.5 % 37.4 % 10.8 % 15.5 % -0.5 % -0.4 % 24.1 % 29.2 %   *Estimated as of 1/22/2025   As Reported Research and development expense** $ 3,698 3,357 1,600 1,123 5,298 4,480 % to Sales 25.8 % 24.5 % 19.5 % 14.6 % 23.5 % 20.9 %   **Includes the following Acquired IPR&D: Laminar - Q4 2023 390 390 V-Wave - Q4 2024 540 540 Total 540 390 540 390   Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP Financial Measures Q4 YTD - Income Before Tax* and Research & Development Expense by Segment Dollars in Millions   Innovative Medicine MedTech Unallocated Worldwide Total 2024 2023 2024 2023 2024 2023 2024 2023   Reported Income Before Tax by Segment From Continuing Operations $ 18,919 18,246 3,740 4,669 (5,972 ) (7,853 ) 16,687 15,062 % to Sales 33.2 % 33.3 % 11.7 % 15.4 % -6.7 % -9.2 % 18.8 % 17.7 %   Intangible asset amortization expense 2,772 2,983 1,754 1,549 - - 4,526 4,532   In-process research and development impairments 211 206 - 107 - - 211 313   Litigation related 358 (108 ) (14 ) 190 5,106 7,070 5,450 7,152   Loss/(gain) on securities (76 ) 362 30 (102 ) 352 381 306 641   Restructuring related 102 479 167 319 - - 269 798   Acquisition, integration and divestiture related 66 175 1,015 164 145 - 1,226 339   Medical Device Regulation - - 204 311 - - 204 311   COVID-19 Vaccine related costs 100 663 - - - - 100 663   Adjusted Income Before Tax by Segment From Continuing Operations $ 22,452 23,006 6,896 7,207 (369 ) (402 ) 28,979 29,811 % to Sales 39.4 % 42.0 % 21.6 % 23.7 % -0.4 % -0.5 % 32.6 % 35.0 %   *Estimated as of 1/22/2025   As Reported Research and development expense** $ 13,529 11,963 3,703 3,122 17,232 15,085 % to Sales 23.8 % 21.8 % 11.6 % 10.3 % 19.4 % 17.7 %   **Includes the following Acquired IPR&D: Laminar - Q4 2023 390 390 Yellow Jersey (NM26 bispecific antibody) - Q3 2024 1,250 1,250 V-Wave -Q4 2024 540 540 Total 1,250 540 390 1,790 390 Johnson & Johnson and Subsidiaries GAAP to Non-GAAP Reconciliation $ in Millions   Quarter to Date   In-processresearch anddevelopmentimpairments Acquisition, integrationand divestiture related (Loss)/gain onsecurities COVID-19Vaccine RelatedCosts Tax legislationand other taxrelated Fourth Quarter Dec. 29, 2024GAAP Intangible assetamortization Litigationrelated Restructuringrelated Medical DeviceRegulation Fourth QuarterDec. 29, 2024Non-GAAP Cost of products sold $ 7,128 (1,162 ) (20 ) (153 ) (18 ) - - 5,775 Selling, marketing and admin expenses 6,453 (4 ) 6,449 Research and development expense 5,298 - (25 ) (6 ) 5,267 Other (Income) / Expense (161 ) (9 ) 16 - (145 ) 68 (17 ) (248 ) In-process research and development impairments 17 (17 ) - - Restructuring 42 (42 ) - Provision for taxes on income 456 171 (158 ) 4 3 80 (34 ) 9 5 (61 ) 475 Net Earnings from Continuing Operations 3,431 1,000 142 13 59 218 (34 ) 38 18 61 4,946     In-processresearch anddevelopmentimpairments Acquisition, integrationand divestiture related (Loss)/gain onsecurities COVID-19Vaccine RelatedCosts Tax legislationand other taxrelated Fourth QuarterDec. 31, 2023GAAP Intangible assetamortization Litigationrelated Restructuringrelated Medical DeviceRegulation Fourth QuarterDec. 31, 2023Non-GAAP Cost of products sold $ 6,798 (1,131 ) (83 ) (42 ) (12 ) - 5,530 Selling, marketing and admin expenses 5,810 (8 ) 5,802 Research and development expense 4,480 (16 ) (38 ) (1 ) 4,425 Other (Income) / Expense (421 ) (17 ) (166 ) - (221 ) 435 3 (387 ) In-process research and development impairments 58 (58 ) - Restructuring 56 (56 ) - Provision for taxes on income 694 175 (134 ) 13 16 30 (191 ) 16 - 56 675 Net Earnings from Continuing Operations 4,132 973 300 45 123 207 (244 ) 72 10 (56 ) 5,562   Year to Date   In-processresearch anddevelopmentimpairments Acquisition, integrationand divestiture related (Loss)/gain onsecurities COVID-19Vaccine RelatedCosts Tax legislationand other taxrelated Twelve Months Dec. 29, 2024GAAP Intangible assetamortization Litigationrelated Restructuringrelated Medical DeviceRegulation Twelve MonthsDec. 29, 2024Non-GAAP Cost of products sold $ 27,471 (4,517 ) (35 ) (359 ) (84 ) (8 ) 22,468 Selling, marketing and admin expenses 22,869 (16 ) - 22,853 Research and development expense 17,232 (69 ) (104 ) (25 ) 17,034 Other (Income) / Expense 4,694 (9 ) (5,450 ) - (798 ) (306 ) (67 ) (1,936 ) In-process research and development impairments 211 (211 ) - - - - - Restructuring 234 (234 ) - Provision for taxes on income 2,621 644 1,066 47 45 302 (29 ) 38 22 (19 ) 4,737 Net Earnings from Continuing Operations 14,066 3,882 4,384 164 224 924 335 166 78 19 24,242     In-processresearch anddevelopmentimpairments Acquisition, integrationand divestiture related (Loss)/gain onsecurities COVID-19Vaccine RelatedCosts Tax legislationand other taxrelated Twelve MonthsDec. 31, 2023GAAP Intangible assetamortization Litigationrelated Restructuringrelated Medical DeviceRegulation Twelve MonthsDec. 31, 2023Non-GAAP Cost of products sold $ 26,553 (4,511 ) (309 ) (133 ) (189 ) 21,411 Selling, marketing and admin expenses 21,512 (29 ) 21,483 Research and development expense 15,085 (32 ) (149 ) (99 ) 14,805 Other (Income) / Expense 6,634 (21 ) (7,152 ) - (307 ) (641 ) (375 ) (1,862 ) In-process research and development impairments 313 (313 ) - - Restructuring 489 (489 ) - Provision for taxes on income 1,736 707 1,505 70 157 52 (9 ) 57 155 (28 ) 4,402 Net Earnings from Continuing Operations 13,326 3,825 5,647 243 641 287 650 254 508 28 25,409

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